DECEMBER 06, 2022 / 04:13 PM IST
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Weak sentiment prevailed through the session as investors offloaded shares in rate-sensitive such as banking, automobile and realty stocks on the eve of RBI's credit policy announcement. In the past, we have seen investors turning cautious ahead of a key event and booking some profit to avoid getting caught off guard.
If the rate hike is above the Street expectations, investors may press the panic button, which could accelerate the selling pressure. The currency market too witnessed hectic activity as rupee breached 82 mark, fuelling concerns of overseas investors cutting their positions in local equities.
Currently, the market is trading near the 10-day SMA (Simple Moving Average) indicating strong possibility of a trend reversal in the near future.
For traders, 18,700 would be the key level to watch out, as above the same we could see a fresh uptrend rally till 18,800-18,850. On the flip side, a fresh round of selling pressure is possible only after the dismissal of 18,600, and below the same the index could slip till 18,500-18,480.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Weak sentiment prevailed through the session as investors offloaded shares in rate-sensitive such as banking, automobile and realty stocks on the eve of RBI's credit policy announcement. In the past, we have seen investors turning cautious ahead of a key event and booking some profit to avoid getting caught off guard.
If the rate hike is above the Street expectations, investors may press the panic button, which could accelerate the selling pressure. The currency market too witnessed hectic activity as rupee breached 82 mark, fuelling concerns of overseas investors cutting their positions in local equities.
Currently, the market is trading near the 10-day SMA (Simple Moving Average) indicating strong possibility of a trend reversal in the near future.
For traders, 18,700 would be the key level to watch out, as above the same we could see a fresh uptrend rally till 18,800-18,850. On the flip side, a fresh round of selling pressure is possible only after the dismissal of 18,600, and below the same the index could slip till 18,500-18,480.